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Case studies AUSCO - Hypothetical case study
Case studies AUSCO - Hypothetical case study AUSCO - Hypothetical case study |
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Page 1 of 2 Management
consultants often confuse a lack of terminology as a lack of strategy
development. Even worse, if they don't
see strong evidence of their own preferred "strategy framework", they can
mistakenly think a client lacks strategy and inadvertently, consultants can destroy a great deal
of effective strategic planning and implementation.
For example, a growing
and profitable firm, let’s call it AUSCO for convenience, has developed
an ability (and preference) for sustaining organic growth. AUSCO uses a
flat management structure to put authority and responsibility close to
the coal face. It recruits talented, qualified, ambitious people. AUSCO
supports advanced communications technology, collaborative special
interest and technical development groups. AUSCO often tackles quite
difficult and challenging assignments, almost as a preference. The company enjoys the respect and continuing engagement of its customers. Whilst
AUSCO management admits it has its challenges, it is growing profitably with staff turnover relatively low
and a high frequency of repeat business. AUSCO has an effective
strategic framework. But would a management consultant specializing in
strategy development be able to recognize it? Can you?  AUSCO never used Porter's 5 Forces framework or the equally famous Boston Consulting Group ‘Portfolio
Matrix’. It has no competitor analysis it can point to, virtually no
customer research, no perceptual maps, no brand propositioning
strategy, no value chain analysis, no six sigma. What it does have is a strong and frequently articulated culture of doing whatever it takes to deliver high value to its clients. It is a process of logical increments of change, inovation and improvement, adapting to a cusotmer base to which it is very close. "Logical incrementalism" is a very popular strategic framework - usually very effective in the shorter term, inadequate for 3-5 year strategic horizons.Like accounting, medicine and any other profession, strategy consulting has developed a language few outside the profession use all that often – especially clients. But just because the strategy was not deliberately constructed according to a pre-ordained model or framework, does not mean there is not a strategy. Much of what managers do is intuitive and much of what happens is learning to do what works and learning not to do the things that don’t work – even if that learning is not consciously mapped to a framework – much less articulated as a ‘theory’. Moreover, much of what is happening is invisible without a trained and informed eye, and consultants are often trained in their preferred methodology, but not the client's. So armed with the language of strategy and a methodology for management consulting and strategy development, consultants can and do make the client feel disarmed. Worse, the combination of some great consulting charts, the identification of threats and the client’s inability to articulate their strategy with the same directness and structure as the consultant, leaves the client experiencing a rising sense of anxiety [and client anxiety is the foundation of all consulting work] that is wholly unwarranted. It is worth reflecting on what strategy AUSCO has in place. |
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